Key Update

A promotional campaign offering milk for Re 1 on the Flipkart platform has sparked criticism from dairy cooperative leaders, who say deep discounting could harm farmers and weaken the cooperative dairy system.

BAMUL Files Complaint Over “Predatory Pricing”

D. K. Suresh, president of Bangalore Milk Union Limited (BAMUL), has filed a complaint with the Competition Commission of India and written to Prime Minister Narendra Modi seeking an investigation into what he called “predatory pricing.” Suresh said milk should not be treated as a flash-sale product. He stressed that every litre of milk reflects the labour and livelihood of millions of dairy farmers. According to him, investor-funded discount campaigns could weaken India’s long-standing dairy cooperative movement.

Concerns Over Impact on Farmers and Cooperatives

Suresh said dairy farmers currently receive around ₹38–₹40 per litre for milk. Selling milk for Re 1, even as a promotional offer, raises concerns about market practices and long-term sustainability, he said. He also noted that BAMUL’s sales have dropped by around 40,000–50,000 litres. Officials are now examining whether the promotional campaign contributed to this decline and how long the trend has continued.

Authorities have also started examining the source of the milk sold under the campaign. Suresh said officials would collect samples and send them to laboratories to verify whether the milk meets quality and food safety standards. Regulators will also review procurement channels to ensure the products comply with regulatory norms.

Flipkart Responds

In response, Flipkart said it periodically runs limited promotional campaigns on selected products, often in partnership with banking partners, to offer additional value to customers. The company said sellers determine product prices on the marketplace and confirmed that dairy partners continue to receive their full agreed payment. It also stated that the promotional campaign does not affect the prices paid to farmers for milk procurement.

Source: Free Press Journal